Beijing Scitop Bio-Tech Co.Ltd(300858)
Issue of shares to specific objects in 2022
Feasibility analysis report on the use of raised funds
April, 2002
1、 Use plan of the raised funds
The total amount of funds raised in this issuance shall not exceed 70 million yuan (including this amount), which will be used for the following items after deducting the issuance expenses:
Unit: 10000 yuan
Project name investment amount use of previously raised funds
Amount invested after No. change
1. R & D and production base project of food sector 1057387317181326200000
2. Supplementary working capital 800000 – 800000
Total 1137387317181327000000
According to the needs of the company’s own development, the raised funds can be replaced before and after the investment of the project is in place. If the net amount of funds raised this time is less than the total amount of funds to be invested in the above projects, the company will adjust and finally determine the priority of the investment of the raised funds and the specific investment amount of each project according to the actual amount of funds raised and the priorities of the projects. The insufficient part of the raised funds will be solved by the company with its own funds or self raised funds. Within the scope of the above-mentioned projects invested with raised funds, the board of directors of the company may appropriately adjust the amount of raised funds invested in the above-mentioned projects according to the actual needs of the project and the procedures specified in relevant laws and regulations. 2、 Basic information of the project invested by the raised funds
(I) R & D and production base project of food sector
1. Project overview
The project is implemented by Inner Mongolia Beijing Scitop Bio-Tech Co.Ltd(300858) Co., Ltd., a wholly-owned subsidiary of the company, with a total investment of 1057387300 yuan and a construction period of 36 months. The proposed R & D and production base for the food sector of the project includes the construction of a new plant and production line for edible probiotic products (including raw bacterial powder and end consumer products, yogurt starter and probiotic metabolites), the purchase of advanced production, R & D and testing equipment such as fermentation system, lyophilizer, mixing production line and third-generation sequencer, and the provision of office buildings, R & D centers, academic exchange centers and supporting facilities. After the completion of the project, the company will further expand the production capacity of probiotic raw material powder and end consumer goods, consolidate the company’s advantages in the business field of probiotic products and further enhance its comprehensive competitiveness.
2. Project investment estimate
The total investment amount of the project is 1057387300 yuan. It is proposed to use the investment amount of 1718132 million yuan after the change of the previous raised funds, and the investment amount of 620 million yuan using the raised funds. The specific investment planning is as follows: unit: 10000 yuan
Sequence investment category investment amount the amount invested after the last raised fund is changed to the number of raised fund
1. Land purchase 2772 Tianshui Zhongxing Bio-Technology Co.Ltd(002772) 00-
2. Project construction 33179005014622 Shanghai Pudong Development Bank Co.Ltd(600000)
3. Equipment purchase 45599709394703 Shanghai Pudong Development Bank Co.Ltd(600000)
4. Reserve fund 407754 —
5 initial working capital 2011049 —
Total 1057387217181326200000
3. Project implementation subject and location
Inner Mongolia Beijing Scitop Bio-Tech Co.Ltd(300858) Co., Ltd. is the main body of the project. The implementation site is located on the industrial land with an area of 17556878 square meters to the west of Zong 9 road and the south of Yungu heng31 road in Helingeer new area, Inner Mongolia Autonomous Region. Inner Mongolia Beijing Scitop Bio-Tech Co.Ltd(300858) Co., Ltd. has obtained the official real estate property right (MEng (2021) Helingeer County real estate property right No. 0011595).
4. Estimated economic benefits of the project
After the completion of the project, the annual production capacity of 10000 tons of food ingredients, 400 tons of probiotic raw material bacterial powder, 100 tons of yogurt starter, 600 tons of epigenetic yuan and 1200 tons of probiotic end consumer goods can be realized. The internal rate of return of the project is 34.00%, the total investment payback period is 5.90 years (including the construction period), and the economic benefit of the project is good. 5. Items involved in the project for approval
As of the announcement date of this report, the project has obtained the filing documents, and the procedures of environmental impact assessment are being handled. (II) supplementary working capital
The company plans to use 80 million yuan of the raised funds to supplement working capital, so as to meet the capital needs of the company’s future business development, reduce the company’s operating risks, increase the stability of working capital and enhance the company’s competitiveness. 3、 Necessity and feasibility of project implementation
(I) R & D and production base project of food sector
1. Necessity of project implementation
(1) Continue to expand production capacity and consolidate competitive advantage
Although the company has successfully completed and put into operation the intelligent production base of edible probiotic products through the previous fund-raising and investment project, which has greatly improved the product stability and production efficiency of the company’s edible probiotic products, and significantly enhanced the company’s competitive advantage and customer recognition in the probiotic market.
However, with the continuous expansion of the company’s business scale, the continuous growth of customer demand and the exploration and development of its own brand, the company’s existing production capacity of probiotic powder and end consumer goods is expected to reach full production in 2022, which can not meet the needs of the company’s subsequent development, limiting the market layout of the company’s C-end business and its future expansion to the field of health products. The smooth implementation of this issuance and fund-raising investment project will greatly increase the production capacity of the company’s Probiotic powder and end consumer goods, break through the bottleneck brought by insufficient production capacity to the company’s development and consolidate its competitive advantage in time.
(2) Break through barriers to entry and form brand advantages
The upstream access barriers of probiotic industry mainly include scientific research barriers, technical barriers and production barriers. Excellent probiotic strains need to go through a series of processes from their isolation, screening and evaluation to the production and promotion of corresponding end products, such as basic research, functional research, clinical research and industrial application development. In terms of scientific research and technology, it is necessary to analyze the molecular mechanism of environmental tolerance, intestinal adaptation and probiotic function of strains. In the process of industrial development, production technology is needed to solve the problems that may occur, such as insufficient number of live bacteria, excessive miscellaneous bacteria, failure of fermentation process and so on. Due to the late start of scientific research on probiotics in China and high industry access barriers, the core strain resources in the probiotic industry have been monopolized by foreign giant companies for a long time.
At present, based on China, the company finds and screens probiotic strains suitable for Chinese intestinal tract, actively uses the company’s strain resource bank to carry out clinical / population experiments and produce probiotic products with more activity and stability. However, there is still a certain gap with international giants in production technology and market share. In this context, the company urgently needs to implement this raising and investment project, improve the scientific and technological innovation ability of probiotic research by increasing the R & D equipment and production line of raw bacterial powder and edible probiotic products, develop various functional products added with probiotics, build China’s own probiotic brand, and lead the whole probiotic industry chain to gradually realize domestic substitution.
(3) Improve R & D capability and grasp market opportunities
In recent years, Germany, the United Kingdom, France and other European countries have increased their investment in probiotic research, the sales of related products are hot, and the probiotic market in Asian countries and regions such as Japan is becoming more and more mature. China’s Probiotic market follows the development of the international market, and the application scope of probiotics is expanding, which is no longer limited to the traditional application field of fermented dairy products. The application of probiotics in beverages, vegetables, meat products, fruit and vegetable juice, bean products and grain products has broad market prospects. At the same time, terminal products such as lactic acid bacteria powder, lactic acid bacteria candy, solid beverage and solid chewing tablets are also gradually forming a market scale.
The construction contents of this raised investment project include new R & D laboratory, pilot test platform and office area, and improve relevant infrastructure. The science and technology R & D center will focus on the collection, preservation, screening of microbial resources (especially lactic acid bacteria resources) and the development and upgrading of technical products. At the same time, it plays an important role in talent training, product design, production process control, quality inspection and so on. The establishment of R & D center is conducive to improving the overall quality of enterprise technicians, improving the R & D efficiency and level of the company. At the same time, the R & D of the company will be closer to the market development trend more quickly, which is conducive to the company to grasp the development opportunities of China’s Probiotic market in time.
2. Feasibility of project implementation
(1) This raised investment project is based on the expansion and extension of the company’s main business to the IPO raised investment project
The “food sector R & D and production base project” to be implemented by the company this time is based on the expansion and extension of the original raised investment project by the company’s compound food additives and edible probiotic products.
First of all, the company’s raised investment project fully covers all the contents of the food ingredient production base and R & D center in the original raised investment project in terms of product line. Secondly, the company’s “project with an annual output of 30 tons of lactic acid bacteria powder, 45 tons of solid drinks, 45 tons of tablet candy and 10 tons of ready to eat lactic acid bacteria” has been completed and reached production in 2020, with good operating results, and is expected to achieve full production in 2022, laying a good foundation for the company to further expand the production capacity of probiotic raw material bacteria powder and terminal consumer products. In addition, the company arranges the implementation of the new raised investment project in Inner Mongolia Autonomous Region and linger New Area as a whole, which can reduce the additional cost caused by remote management on the one hand, and combine the company’s technology research and development, product development, test and verification and product production on the other hand. At the same time, it makes use of the existing teams of Inner Mongolia and meikesheng Biotechnology Co., Ltd. in product marketing, after-sales service and technology research and development, Achieve effective collaboration within the company.
(2) The company has strong customer resource advantages
Downstream customers of probiotic raw material powder mainly include food and beverage manufacturers, probiotic end consumer goods manufacturers, functional food manufacturers and pet food manufacturers. In terms of raw material mushroom powder, the company mainly uses the customer resource base accumulated for a long time in the compound food additive business to actively promote and achieve good results. Mengniu Dairy, Bright Dairy & Food Co.Ltd(600597) , Shengmu high tech and Eurasian dairy have gradually begun to purchase the company’s Probiotic raw material mushroom powder products, and the procurement volume is increasing year by year. In terms of probiotic end consumer products, the company is deeply recognized by downstream enterprises with its core strains such as Lactobacillus casei Zhang and Bifidobacterium lactis V9, and the number of cooperative enterprises and products is gradually increasing. Guided by technical cooperation, the company has established a long-term and stable strategic cooperative relationship with leading enterprises in downstream industries, with high-quality customers, strong cooperation stability and high cooperation viscosity.
On December 18, 2020, the company successfully renewed the strategic cooperation agreement with Mengniu Dairy, with the strategic cooperation period from 2021 to 2023. The scope of cooperation between the two sides includes compound food additives, probiotics such as Bifidobacterium lactis V9, compound lactic acid bacteria, Bifidobacterium lactis probio-m8 and Lactobacillus paracasei pc-01. During the term of the agreement, Mengniu Dairy is willing to maintain the strategic cooperation status of the company’s supplier, and continue to invest in R & D with the company on the invention patent of “a Bifidobacterium lactis for the treatment of constipation and diarrhea and its application”, focusing on the application research of dairy products and the evaluation of functional clinical trials. The long-term and stable strategic cooperative relationship between the company and Mengniu Dairy is conducive to the digestion of production capacity after the completion and operation of the raised investment project.
(3) The company’s personnel and technical reserves are in good condition
Through long-term operation in the probiotic industry, the company has formed sufficient technical reserves, which has a strong first mover advantage compared with enterprises in the same industry. Relying on the lactic acid bacteria strain resource bank and the relevant process technologies of probiotic strain screening, evaluation, production and storage, the company has gradually formed a certain technical reserve in the aspects of metabolic regulation and culture technology, low-temperature coating drying technology and synergistic application technology in recent years, which has laid a solid foundation for the implementation of this raised investment project.
The company’s main senior managers and core technicians have served in the company for many years, accumulated rich industry experience in probiotic products, and have good professional judgment ability on the development trend of the industry. They can effectively grasp the industry direction, seize market opportunities and strive for excellent business performance. At the same time, the company has a professional compound R & D team, with 55 full-time and part-time R & D personnel and 27 personnel with master’s degree, doctor’s degree or above (more than 58% are food and related majors). The company’s talent reserve is a project
